Management consultants fail to address the business problems that caused the financial crisis

Virtually all the financial institutions, corporations, and other enterprises that have problems due to economic recession, retain management consultants for advice and management improvements. No current management consultant has the outlook or capability to help their client eliminate the one problem that holds back all enterprises and caused the financial crisis, the failure to manage the business.

All consultants today promote dead-end 20^th century management

Much business change management consulting has been packaged into business services provided by hired staff, rather than professional problem solving for measured improvement. Recent books and media publicity show cases where the enterprise did not receive the professional services expected from management consultants. All consulting services today promote obsolete 20^st century management.

A new management consulting model is needed to restore professionalism and prevent business problems

A management consulting model is needed to eliminate problems by providing:

• Services based on organizing the business for 21^st century management
• A method for the enterprise to lead and participate properly in business change
• A clear framework to manage the scope and participation for both parties
• Methods and tools that both the enterprise and consultant understand and use
• Planned and measured value of the consultant and success of the enterprise

The model must build enterprise capabilities to manage the business and business change, and focus consultants on high-value professional results the client enterprise cannot achieve on its own.

The R-pM Management Consulting Model organizes services within an enterprise, market, industry, or economy business structure

The R-pM Management Consulting Model scopes all services within a business structure, and extends the structure to cover the complete enterprise, market, industries, and economies. All services provide a measurable result value-added return to the client enterprise. [more...]

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20^th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21^st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Value chain methods used today lay an additional contrived structure over the business

Methods used today lay contrived value-chains over the business. The chain is not integrated within the business to control actual costs against value-created or to produce value within total managed business value. These value chains have never been successful in actual business management.

R-pM is the first method to manage value chains as part of the managed business

There has never been a method to organize the business to provide natural value chains until Result-performance Management (R-pM).

R-pM employs information technology to manage all the results of value produced by the business and all capital solutions that incur costs in performance to produce each result. R-pM builds result value chains with end-results of value as a link in the chain, within a higher-level set-result that is the final result from the chain. Result relationships chain the end-result links together and each end-result to the final set-result. Each end-result has a managed value that adds to the total final set-result value.

The costs and value-added is managed at each link in the chain to manage total chain value-added

Supplier input results are transformed by performance through internal business results to customer final results. Each solution utilized incurs a performance cost. The total of solutions utilized is the cost of creating result value at each link. R-pM manages the end-result value-added at each link and the set-result value-added for the complete chain. Result value chains manage the value, quality, volume, risk, and goals for each result and the final result. Result value chains enable supplier-customer integration and business collaboration. [more...]

Alignment is an unsolvable 20^th century management problem

All enterprises have alignment problems in aligning management strategy with actual operations, operations with the actual business, outsourced solutions with internal solutions, intangible assets with tangible assets, capital investments with the business, account charts with the business, management decisions with business change, and on and on. The problem is the attempt to align capital utilized in performance with other capital utilized in performance.

Performance is aligned with poorly-defined performance, since the business is not organized

Performance is defined to include not only the utilization of capital in the execution of actions but also the results accomplished. This makes it difficult to organize and manage the business as capital solutions of worth utilized in performance to produce value in results. The three components of the business in results needed for success, capital investments to provide solutions, and performance in the utilization of solutions to produce results are confused as performance. 20^th century management has never defined results needed for business success as a set or capital utilized in performance as set of solutions. Therefore, there are no defined results to align capital utilized in performance against.

R-pM separates results and capital from performance to organize the actual business and align solutions with results

R-pM organizes the business as a structure of results produced, capital solutions available, and specific solutions utilized in performance to produce a result. Solutions utilized in performance to produce the same result are defined, aligned, integrated, and utilized to incur performance costs that can be totaled to the total performance cost to produce a volume of the result of determined value to create result value-added. [more...]

Conventions, definitions, and standards used in 20^th century management are inconsistent and confusing

20^th century management does not organize the natural business or apply common-sense management, as we do in our personal business. Arbitrary contrived structures are laid over the business. Each structure has its own set of conventions, definitions, and standards. Added together this produces an inconsistent hodge-podge of conventions, definitions, and standards that are applied separately for organization, planning, processes and systems, accounting, administration, IT architectures, performance management, reporting, and other parts of enterprise management.

Rule No 10 of 21^st Century Management: Employ 21^st Century Management conventions and standards

The 21^st century business must avoid the problems inherent in 20^th century management. This is done by organizing the business with R-pM for 21^st Century Management. 21^st Century Management uses one set of conventions, definitions, and standards that are applied to the actual business and used for all management organization, planning, directing, control, and reporting. Common conventions, definitions, and standards enable business collaboration and education, solutions, and services that can be applied to any business.

R-pM provides one consistent set of conventions, definitions, and standards for 21^st Century Management

21^st Century Management conventions, definitions, and standards are defined, updated, and maintained in the R-pM Toolkit to support the application and use of R-pM. The conventions, definitions, and standards can be followed by any education institution, solution developer, or service provider to meet the needs of any 21^st century enterprise [more...]

Effective business collaboration is prevented by 20^th century management

Each enterprise today lays a different collection of structures over the business, and each structure defines the enterprise differently and captures inconsistently-defined data against the various structures. The 20^th century method of business collaboration is for businesses to lay the same process, information system, or data reconciliation and information reporting structure over the business. This is very expensive and still does not provide a satisfactory solution, since none of the collaborators actually organizes or manages the business.

Rule No. 9 of 21^st Century Management: Collaborate to maximize shared value and minimize shared costs

Effective business collaboration and outsourcing requires that the business of each collaborator be managed. If the business is managed, there are common definitions, value creation, performance costs, and quality levels that can be managed for each business and across businesses. 21^st century management requires that businesses be managed to enable collaboration by maximizing shared value and minimizing shared costs.

R-pM is one simple business structure used by all businesses to enable collaboration and integration

Result-performance Management organizes the business for 21^st Century Management to define the results, result quality, result value, result costs, and result value-added across the business. The capital utilized to produce each result is defined as performance solutions to know performance costs against the result. The business structure can be managed within a business or across businesses to create result value-quality chains where each result is produced for the highest value and quality for the lowest cost [more...]

20^th century management consultants implement unsolvable problems

Consultants today do not help clients solve the unsolvable 20^th century management problems. Typical consulting services lay structures over the business and introduce new unsolvable problems in the need for reorganization, business and information complexity, unknown costs and value, unknown capital worth and returns, overlaid solution and business conflicts, and on and on.

R-pM provides the 21^st Century Management consulting model to organize and manage the business to avoid unsolvable problems

Unsolvable problems occur due to clashes between overlaid structures and the actual business. The problems disappear when the actual business is organized with R-pM to manage one business structure to integrate planning, directing, control, and reporting.

The 21^st Century Management consulting model guides the enterprise and consultants to work together to achieve new business value in result value-quality chains, result-performance costing, strategic value management, result-performance optimization, project result management, human capability management, and other new concepts not possible with 20^th century management.

Opportunities are emerging for R-pM consultants to support 21^st Century Management

21^st century management will ultimately replace obsolete 20^th century management, creating a demand for R-pM management consultants. R-pM consulting sales and delivery are supported by R-pM websites, The R-M Toolkit, and other R-pM promotions. Professional management consultants and firms, who want to provide professional services that provide planned and measured enterprise benefit, will gain significantly by being among the first registered R-pM management consultants [more...]

20^th century management cannot optimize operations in the performance solutions that produce output results

The 20^th century business is not organized. Therefore, operations in the capital utilized as specific performance solutions to produce specific output results cannot be managed. If operations are not managed performance cannot be optimized to produce high-quality results and the result value-added that contributes to the profit result.

Rule No. 5 for 21^st Century Management "Operate to optimize operations, result value-added, and the profit result"

The ten rules for 21^st Century Management help each enterprise to understand how well positioned they are to compete with the coming 21^st century enterprise. Rule No 5: "Operate to optimize operations, result value-added, and the profit result" establishes an enterprise routine of managing performance solutions, managing the results produced, and managing the return on investment and contribution to profits over time.

R-pM manages cost-effective performance to produce value-quality results and profits

Performance is managed to capture the cost of development or improvement, meet expectations in performance, integrate with other solutions of the same class for the same result, and manage the cost, effectiveness, capacity, and uncertainty of each solution.

Results are managed to utilize integrated solutions to reach result goals, to create result value greater than total performance costs for result value-added, to produce a high-quality result, to produce the expected volume of results on time, and manage the risk of a poor result.

Results are managed against performance as the routine, High-value results are periodically optimized by managing the volume, value, quality, goals, and risk of results by optimizing the capacity, cost, effectiveness, expectations, and uncertainty of the performance solutions that produce the result. Optimizing ensures that performance is cost-effective to produce high value-quality results to return investments in performance solutions, and provide the result value-added that contributes to the profit result [more...]

20^th century management lays many organization and management structures over the business

20^th century management used today starts with an organization structure that is laid over the business, instead of organizing the business. This prevents integrated business organization and management. Additional structures are laid over the business for planning, directing, control, and reporting. Separate operation structures are used for the various functions and activities of the business. Different structures are used for investment planning and capital development. The proliferation of structures creates business and information complexity. Rigid overlaid structures conflict with the actual business causing the wide range of unsolvable 20^th century management problems.

21^st Century Management integrates business organization, management, operations, and development

R-pM organizes the actual business for 21^st Century Management. One business structure defines the current business and another defines the desired strategic business, so that management organization, planning, directing, control, and reporting are focused on the transition from the current to strategic business structure. Business operations are organized by result groups within the business structure to produce specific chains of results. Capital development is organized and managed through sub-sets of the structure for results and performance solutions to be developed. Projects are managed through a project business structure that organizes new results and solutions being developed and the capital assigned to the project as specific performance solutions. R-pM uses the actual business as one structure for all organization and management needs [more...]

Business processes and information systems laid over the business prevent management of costs, value, and quality

20^th century management lays monolithic business processes and information systems over the business to manage business performance. Results produced by the business are defined as performance and are not specifically identified and managed as a set or chain leading to final results that go to the customer. This prevents to business from managing the cost of producing a result, the result value, the result quality, and the result value added. Much time and money is wasted trying to reconcile ill-defined processes and systems for business collaboration.

Rule No. 2 of the 10 rules of 21^st Century Management: Generate profits from a chain of managed value and quality

Result-performance Management (R-pM) organizes the performance producing each result and organizes results as value-quality chains to manage cost-effective performance producing value-quality results to provide high value and high quality customer results.

R-pM produces customer business results from result value-quality chains

R-pM redefines business processes and information systems by the results produced and manages each result in the result value-quality chain starting from input results from the supplier, result value added along the enterprise result chain, and the final result to the customer. R-pM manages result value-added to contribute directly to the profit result. R-pM enables the business to integrate and manage the chain to help suppliers meet enterprise needs and to add more value by meeting customer needs [more...]